Some 209,000 small and medium-sized businesses closed in Russia between January and March 2026 — nearly 9% more than in the same period of 2025, Forbes Russia reported, citing data from the business analytics service Kontur.Focus. Russia has a total of 6.9 million such businesses.

Retail, beauty salons, and food service are suffering the most, according to experts polled by the outlet. High interest rates, declining purchasing power, increased competition, and higher taxes are the main drivers.

Up to 40% of clothing stores in Russia could close in 2026 as foot traffic in shopping malls falls and competition from online marketplaces grows, Forbes Russia sources said. Thirteen fashion brands may exit the market, among them Zenden (which closed 130 of its 230 locations), Orby (which intends to file for bankruptcy for two of its legal entities), and Modis (which has filed for bankruptcy).

Not every chain pulling back from physical retail is heading for collapse — some are restructuring instead. Forbes Russia counts among them the fashion brand O’Stin (which closed 62 stores last year), the grocery retailer VkusVill (which closed nearly 300 stores), and the cosmetics chain L’Etoile (which closed 50 locations and plans to close 150 more).

The food service sector is shrinking as well. Falling demand, declining restaurant foot traffic, competition from grocery chains and their prepared food sections, staff shortages, higher taxes, and rising labor costs are pushing companies to cut rental expenses and seek cheaper premises.